Food and Beverages News
- Analysis of major catering enterprises in 2006
Date: 13-Jun-2007 Sources: (Xinhua Online)
Department of Commercial Reform and Development of MOFCOM, China Cuisine Association and China National Commercial Information Center launched a survey on 100 major catering enterprises. Statistics showed that in 2006, China's major catering enterprises developed at a higher rate, which realized a turnover of 83.212 bn Yuan, a 24.4% increase year on year, and accounted for 8.05% of the total turnover of China's catering industry, which was 0.35 percentage points higher over the previous year. Profit and tax reached 11.04 bn Yuan, which was increased by 21.9% year on year. The main characteristics of China's major catering enterprises in 2006 are as follows:
1. Major catering enterprises developed at a higher rate and the catering market was further centralized.
In 2006, China's major catering enterprises continued to develop and expand. Its total asset amounted to 40.53 bn USD, up by 27.01% over the previous year. The number of catering chain enterprises and employees reached 14,500 and 1 million respectively, which went up by 29.95% and 19.9% year on year. 20 catering enterprises' turnover exceeded 1 bn Yuan, 9 more than last year. Meanwhile, the total turnover of China's top ten major catering enterprises reached 41.764 bn Yuan, and the number of their chain enterprises was 6442, which accounted for 50.13% and 44.5% of the total amount of China's major catering enterprise respectively.
Currently, there are 6682 catering chains from 22 hot pot enterprises, which realized a turnover of 30.03 bn Yuan and accounted for 36.04% of the total turnover of China's major catering enterprises. The number of fast-food enterprises and chains were 15 and 4375 respectively, with a turnover of 23.171 bn Yuan, which took up 27.81% of the total turnover of China's major catering enterprises. Meanwhile, 42 specialty restaurants and 1690 specialty chains realized a turnover of 19.537 bn Yuan, which accounted for 23.45% of the total amount while the turnover of recreation and other comprehensive catering enterprises reached 10.578 bn Yuan and took up 12.7% of the total turnover of China's major catering enterprises.
2 . Operating costs declined and advantages of scale emerged.
In 2006, management level of China' major catering enterprises was elevated. Statistics showed that raw material cost took up 41.20% of the turnovers of China's 100 major catering enterprises, declined by 2.36 percentage points over the previous year while the labor cost accounted for 11.42% of the total turnovers, down by 0.5 percentage points than the year 2005. Meanwhile, profit margin of the top ten catering enterprises reached 15.45%, which was 2 percentage points higher than average while that of the bottom 10 catering chains was only 10.73%, 3 percentage points lower than average.
3. Catering chains continued to develop; merger and acquisition became the highlights.
Catering industry is one of China's industries that first adopted the chain operation. In 2006, the total number of chains of China's major catering enterprises was 14489. Currently, Chinese-funded catering enterprises developed mostly by means of franchise operation while foreign-funded catering enterprises expanded business via regular chain. With increasing operating experiences and rapid development of brand enterprises, Chinese-funded enterprises have an increasing demand for brand development, capital operation and management innovation, and merger and acquisition also became the new highlights in the development of catering industry.
In 2006, China's major catering enterprises had problems as follows: firstly, the turnover of China's top catering enterprises was 16.7 bn Yuan more than that of the bottom catering enterprises, up by 27.5% over last year, which indicates that top catering enterprises have great potential to develop at a high rate while small-scaled catering enterprises grow at a relatively slow pace. Secondly, brand strategy, capital operation, as well as development of catering chains still need to be further improved.
Under the upgrade of market competition and consumption structure, China's catering enterprises should constantly strengthen the efficient implementation of chain operation, network marketing and other modern operating methods, as well as fully explore the market potential, and make more contribution to boost the modernization of China's catering
Sponsor Results:
